Horizontal and vertical interactions in local fiscal slack: a spatial analysis of local governments in New York state

Jongmin Shon and Sunjoo Kwak

Local Government Studies, 2024, vol. 50, issue 5, 939-964

Abstract: With the recurring economic crises, the literature on fiscal savings behaviour has expanded its scope from state governments relying on budget stabilisation or rain-day funds to local governments mainly using general fund balances. While many studies have explored the determinants of local savings behaviour, few have taken fiscal interactions among local governments into account. To fill out this gap, this study explores whether spatial interdependence in fiscal slack exists horizontally between counties and vertically across counties and municipalities through the unreserved fund balance of local governments in New York State from 1996 to 2016. The empirical findings indicate that horizontal interdependence in fiscal slack among county governments exists in the short-run, while vertical interdependence is observed across counties and municipalities in the long-run.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/03003930.2023.2258796 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:flgsxx:v:50:y:2024:i:5:p:939-964

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/flgs20

DOI: 10.1080/03003930.2023.2258796

Access Statistics for this article

Local Government Studies is currently edited by Helen Hancock

More articles in Local Government Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().